First... let me state... this is only my opinion based on years of successful
experience, both in the field, in corporate MLM positions, and now as an
MLM consultant. You could possibly call it an Expert Opinion, and some
time experts disagree on the same factual observations... that's life.
However, if you're not an expert, seek out a few on this topic before
personally making up your mind on this topic. A successful upline in your
business is typically NOT an expert.

Additionally, please be clear that as we
talk, I'm not addressing the idea of Distributors purchasing product
monthly (auto-ship or auto-bill). The issue is "what to focus on"
and "what is one more important"... also, this article will address
if distributor product USE (not purchase) is critical (or not) for their
success.

The questions that should always be asked when considering a business:

#1- Does the product have a market? (IE. Is it a quality product, can I relate to it, is it easy to
understand?)

#2- Is the compensation for the sale of product fair? (IE. Is the compensation plan understandable, is it clear how I earn
money, is the compensation for the effort expended reasonable, am I being
paid on product sales or recruiting?)

90% of the people "IN MLM"
(meaning joined as a distributor)
are in it for the money!

Most join IF they can see the value of the
product and can relate too it... NOT because they have actually USED it
before hand. (Perhaps 10% of those "IN MLM" were first customers.)

90% were searching for an income opportunity of some kind... wanting an
opportunity of some kind... and they could see the value of the product...
they could relate to it... So, they joined. In 50% of the cases (perhaps
even lower) they'll actually use the product on an ongoing regular basis.

It is critical to understand the synergy
between all 4 legs... but to start you have to understand this:

There is No
Opportunity without a solid Product and
A solid Product alone does not make an Opportunity!

Product IS NOT most important... It may be the
first question to ask... that's only because if you can't get past that... no
sense in looking at anything else. It is part of a complete overall
synergy, without which there is NO REAL OPPORTUNITY.

The same can be said for any other of these 4 legs.

Companies that focus on product fail their members. Companies that focus
on Comp Plan fail their members. Companies that focus on the Company fail
their members. Companies that focus on Systems/Support/Sponsors fail their
members.

My point is product is not the Most Important part of an overall
successful BUSINESS OPPORTUNITY.

If you wanna be a customer that shares a product with other customers...
that's just fine... but MLM is just a Hobby for you... NOT A BUSINESS.

Dispelling Myths: A Business is not
made up of customers telling other customers. A Business is made up of
Distributors sharing a product with customers and finding other
Distributors.

Use the product.... IF YOU LIKE. But, It's
NOT critical for success in your BUSINESS for you to do so. (It may be
critical for your health or your wallet or your attitude, depending on the
product; but not critical for your success.)

There are Many Cases out there to prove my point. All the propaganda your
mentors fed you while you were growing up in your MLM career will not
change these facts.

#1- Companies with POWERFUL products (even products that CURE CANCER,
CHANGE THE WORLD) that do not have the other 3 legs in place will not
offer their members a serious chance at long term success.

#2- Companies that focus on Customer gathering and product alone... will
stall.

#3- Companies that focus on Distributor gathering and opportunity alone...
will stall.

A miracle pill, fancy jungle juice, revolutionary VoIP, some techno Wizard
driven Widdget... will only get you 25% of the way there. Don't get me
wrong PRODUCT IS VERY CRITICAL!

NOT 50%, not 75%, not 100%. Only 25%!

As an example... If you're in a Juice company... then be excited about your
Juice product, and even use it if you love it. For you maybe it's Fruta
Vida, Mona Vie (Monarch), Xango (Mangosteen), Eniva (Vibe), Agel (gel),
Xooma (Powder), Morinda (Noni), Sea Silver, Affinity (Just-2), FreeLife (GoJi),
URI (Powder).... many others.

Dispelling Myths: Without fair compensation, a solid
company, and great support... there just isn't an opportunity in any of
these companies. So, go the next step and evaluate every aspect of a
company... not just how great their product is.

There are a TON of very valuable products.
For some... the science is better than others. Others have very credible
Doctors and Research by 3rd party firms... others just have individual
ingredient studies. All of them claim to be the best... when in reality...
they all have something to share.

They all talk about Proanthocyanidins, Anti-Oxidants, ORAC, Charged Ionic
Fluids, Bio-Available... on and on and on...

For technology companies the buzz might be VoIP or WiFi, for investment
companies a new exciting strategy of investment, for information companies
perhaps a new way to think about the world and organize ones life!

You might have the question: "If the product is
so valuable, why shouldn't everyone be using it?"

While it is a good question... it is on it's
face irrelevant to Distributors. If we're talking about nutritional
products, perhaps I have diabetes and there's too much sugar in it...
perhaps I just can't stand the taste... perhaps it does funny things to
me. But, I can still recognize it's value to others.

How does use of a product equate to selling the
product?

I'm sure you've heard the phrase "Could sell
snowballs to Eskimos". One does not need to be "A Product of the Product"
to be effective at sharing product... use of the product is entirely
optional for success. While many want you to have a personal experience
with the product so you can share that with those you talk to... (and this
is a nice bonus) It's not critical. Why?

Distributor use of product is irrelevant to long term success of an MLM.
What is critical is the use of product by the end consumer/customer. Most
MLM's blur the lines... make distributors customers and customers
distributors. 90% of the MLM's that are attacked by the AG's or FTC is due
to the lack of a real product being sold to a real customer. Often used in
reference is the case against Amway itself... or the 70% rule.

Customers and end users where the main focus here. Basically the court
wanted to spot "Garaging" from happened, and wanted to see more product
reaching end users.

Most MLM's from that point started implementing policy that would slow
"Garaging". They put in smaller monthly quota's, put in their policies
that 70% needed to be resold, and encouraged the development of customers.
In practical application the participants of MLM and even the MLM owners
themselves view distributors as end consumers... and this is dangerous on
2 fronts.

#1- When most people enroll to "Make Money" and don't, they usually quit
buying the product. Unless a leader keeps working a downline will unravel
from the bottom up. Many have seen this when they slow down or
retire... because their efforts to fill the holes, made by those leaving,
isn't happening any longer.

#2 - Constant recruiting becomes an issue when there are no REAL retail
end customers. Like a revolving door... people in people out... if you
quit putting people in... the check goes down.

Customers, not interested in the
business, are the key to stability.

The courts, FTC, & AG's agree.

But, growth happens NOT from customers...
but from distributors... so, you NEED both.

I don't entirely agree with the below courts
position... and it is just 1 case. However, this is something many people
need to consider. In 1996 a court ruled that commissions COULD ONLY
be paid on product sales to non-distributors.

There are a lot of takes on this... but #1 should be the that CUSTOMERS
using product is more critical than distributors using product. No matter
ones perspective on this issue there is an underlying misunderstanding in
the MLM world about the idea of commerce. Basically, move products to end
users who will use the product because they love the product.

If you go to the next step and indicate that distributors are customers
and thus a prerequisite for doing a business is the love of a product
regardless of the opportunity... I think you cross the line.

If someone loves the product they are selling... MORE POWER TO THEM.
However, that saying comes to mind... "Could sell snowballs to Eskimos".
Even if I don't like snow personally, and I was good at sharing things
with others... I could sell snow.

Most people however, are not sales people... they are regular joes... so,
while I don't personally care if you use it, I think a better way to put
it is: Is it a product I can see the value of and can relate too?

Some people would never use Vitamins, minerals, and jungle berry juices...
BUT, if they can see the value and can relate to it... they can do just
FINE sharing it with others.

Belief in the product doesn't require personal use. To sell/share a
powerful and valuable product does not require personal use. One can
truly believe in the benefit of a product for others without experiencing
or having the benefit themselves. Most people will NEVER see a
result with MOST products... but, they can believe in the
science... they can believe in what they've been told... EVEN IF they
don't see a result themselves.

The point here is... you have your choice of HUNDREDS of companies that
have BEAUTIFUL products. Again, some perhaps better than others... But,
they ALL have 1 thing in common...

Inevitably opportunity rests not JUST
with the product... but, with Compensation, Company/Support, &
System/Support/Sponsor as well... all wrapped up in a synergetic ball! You
need ALL 4 legs.

This applies to service companies, information companies, technology
companies, etc.

Don't get lost in the product... unless you JUST want to be a customer...

If you want to build a business... if you want to make a career in MLM...
if you want to generate success and teach success... You'll empower your
"team" with greater insight into the BIGGER picture.

The point?

CUSTOMERS are Critical... But a Distributor and a Customer are 2
different things. A customer uses the product only for the product. They
want a good price and they want to see the product/service work.

DISTRIBUTORS are Critical... But a Customer and a Distributor are 2
different things. A distributor can use the product if they should like...
but, personal use (while perhaps nice) is by no means essential. The
purpose of a Distributor/Representative is to "spread the message".

While the business model of MLM has been "be a customer and share the
product with other customers and get them to do the same" ... there are
flaws with that mentality when pairing it with the idea of Building a
Business. On its face customer referrals is Brilliant! And it WORKS for
the company as a means to move their product. The company wants you to
associate yourself as a customer for many reasons.

I can think of 20+ companies this second (there are hundreds... perhaps
thousands that do this)... companies like Dish Network, BMG, Columbia House, Ronco, the Cable Company... and on and on... where they encourage you with
incentives... mostly NOT financial (perhaps rebates or discounts or free
stuff)... but incentives none the less.

In the world of "Referral Marketing" the idea of making an income... let
alone a nice living... is really none existent. A customer referring other
customers is a GREAT distribution method... but not so great... in fact,
HORRIBLE when it comes to the idea of that customer trying to generating a
living/income.

The top earners of the MLM world... already know this. Some teach it... others
don't. For MOST of the top 10,000-30,000 distributors across the industry...
those who earn the most and create a solid/long term career... have done so
based on a different concept... NOT Referral Marketing "Customers sharing
with Customers". But, based on a concept of Leverage.

Customers do not create leverage. They create residual income (in
consumable product companies) and volume.

The majority of MLM Pro's don't see themselves as
customers. They see themselves as business people who are
moving a product to market... who in many cases might use the product (maybe
50%... maybe a bit more). Mostly however, product use by leaders is "FOR
EXAMPLE ONLY". "Speed of the leader is the speed of the pack." They want
their downline using product.

Their mentality isn't I'm a customer and I'm going to share this product
with others so they can be a customer too. Their mentality is... how many
people can I find... who can get a few customers and many other people to be
business builders? How can I hit the #'s.

When you're talking to the long term wealthy of the MLM world... you're
going to find they spend a lot of time talking about #'s and figures.

Their chosen method to reach those numbers is to talk about the product
and show that they use the product. In many cases... perhaps even MOST cases
they use the product for show... If for some reason, that business fails...
they'll be on to the next business using the next product.

Don't confuse loving the product - using the product, with Building a
Business. Because, if you do you'll lock yourself into a box.

If you want to build a business... #'s are important, personal product use
is not (nice, not critical).
If you want to be a customer... #'s aren't important, personal product use
is.

Can you do both?YOU BET! But don't confuse the 2

Because I think it's so important I'm going
to state it again... it is critical to understand the synergy
between all 4 legs... but to start you have to understand this:

There is No
Opportunity without a solid Product and
A solid Product alone does not make an Opportunity!

Get out of the box and throw the box away.

As I've said many times before... "Don't think outside the box. The fact
that you admit there is even a box limits your thinking. There is no box!"
(For more on this go to:
Discard Your Box!)